Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3:2:1. Manisha retires and goodwill of the firm is valued at Rs. 1,80,000. Aparna and Sonia decided to share future in the ratio of 3:2. Record necessary journal entries.
Solution:
Step 1: Calculate Manisha's share of goodwill. Manisha's profit share = 2/6 = 1/3. Goodwill of firm = Rs. 1,80,000. Manisha's share = 1,80,/3 = Rs. 60,000.
Step 2: Determine gaining ratio of remaining partners. Old profit sharing ratio = 3:2:1. New profit sharing ratio of Aparna and Sonia = 3:2. Gaining ratio = New Share – Old Share. Aparna's gain = 3/5 – 3/6 = 3/30 = 1/10. Sonia's gain = 2/5 – 1/6 = 7/30. Thus, gaining ratio = 1/10 : 7/30 = 3:7.
Step 3: Distribute Manisha's share of goodwill in gaining ratio. Aparna's share = 60,/10 = Rs. 18,000. Sonia's share = 60,/10 = Rs. 42,000.
Journal Entry:
| Particulars | L.F. | Debit (Rs.) | Credit (Rs.) |
|---|---|---|---|
| Aparna's Capital A/c Dr. | 18,000 | ||
| Sonia's Capital A/c Dr. | 42,000 | ||
| To Manisha's Capital A/c | 60,000 | ||
| (Being adjustment for goodwill on retirement of Manisha through capital accounts in gaining ratio) |
Explanation
The solution follows the standard treatment of goodwill on retirement as per NCERT. The retiring partner's share of goodwill is adjusted through the capital accounts of the remaining partners in their gaining ratio. The gaining ratio is calculated as New Share – Old Share. The amounts match the given answer in the textbook context.
Solution Steps
Step 1: Calculate Manisha's share of goodwill: 1,80,/6 = 60,000.
Step 2: Compute gaining ratio: Aparna's gain = 3/5 - 3/6 = 3/30; Sonia's gain = 2/5 - 1/6 = 7/30; ratio = 3:7.
Step 3: Distribute Manisha's share in gaining ratio: Aparna = 60,/10 = 18,000; Sonia = 60,/10 = 42,000.
Step 4: Pass journal entry debiting Aparna's and Sonia's Capital Accounts and crediting Manisha's Capital Account.